UNECA Calls for Unified African Position Amid Debt Crisis and Donor Withdrawals

Economic Pressures Mount as African Nations Face Currency Depreciation and Trade Disruptions

PHOTO: Claver Gatete, UN Under-Secretary-General and Executive Secretary of UNECA

New York – The United Nations Economic Commission for Africa (UNECA) has issued a stark warning about the growing economic challenges facing African nations, calling for a coordinated continental response to mounting debt pressures, currency crises, and declining development assistance.

During a press conference at UN headquarters, UNECA Executive Secretary Claver Gatete emphasized that “Africa’s voice must be consistent, coordinated, and evidence-based” in addressing these systemic challenges. The briefing came as part of the High-Level Political Forum discussions, highlighting the urgent need for policy coherence across the continent.

Fragile Recovery Amid Growing Debt Burden

While Africa’s real GDP is projected to grow between 2.9% and 3.6%, more than half of African countries now carry public debt exceeding 60% of GDP. Seven nations are officially in debt distress, with an additional eleven considered high risk.

“External financing is drying up while pressure on public budgets continues to grow,” Gatete warned. “We cannot overstate the urgency of mobilizing domestic resources.”

The continent faces severe currency depreciation, with Nigeria’s naira losing nearly 95% of its value between 2023-2024 and Egypt’s pound depreciating 50% since 2023. Average fiscal deficits across Africa reached 5.1% of GDP in 2024.

Declining Aid and Protectionist Policies

Official Development Assistance (ODA) has fallen to 2.1% of Gross National Income (GNI) in 2023 from 3.4% in 2006, with major donors including the United States, United Kingdom, and Germany announcing further cuts.

Meanwhile, protectionist policies in developed economies are beginning to impact African trade. A forthcoming joint study by UNECA, the African Union Commission, and the African Development Bank suggests new U.S. tariffs could reduce African exports to America by up to 21.5%.

“This goes beyond trade volumes,” Gatete noted. “It affects industrial jobs, regional supply chains, and Africa’s voice in shaping engagement terms.”

UNECA’s Response Strategy

The Commission outlined several intervention areas:

• Supporting domestic taxation systems and debt sustainability
• Strengthening data infrastructure
• Accelerating implementation of the African Continental Free Trade Area (AfCFTA)
• Advocating for Special Drawing Rights reforms

Recent technical assistance includes land tax system evaluations in Ethiopia, transfer pricing audits in Mauritania, and AfCFTA customs training in East Africa.

Call for Coordinated Diplomacy

Gatete stressed the need for better coordination between Africa’s permanent missions in New York and Addis Ababa, and regional institutions supporting member states. “This is a moment that demands unity of vision and message credibility,” he stated.

The UNECA chief was joined virtually by Stephen Karingi, Director of the Macroeconomic Policy, Governance and Finance Division, who contributed to the technical discussions.

As African economies navigate this complex landscape, UNECA’s message underscores the critical need for evidence-based policymaking and continental solidarity in global economic negotiations.